It always amuses me when people bring this up, and its not in the context of endurance sports (cycling, marathons, etc). In those endurance situations, you sweat out too much salt, so gatorade is actually needed.
But for most people, who are exercising for 30-60 mins at a time, all you need is plain tap water.
The only non-sport related water toxicity death I've heard about was a kid at Cal. State Univ. - Chico, who was forced to drink 3-4 gallons of water as a fraternity hazing 'game'. He drank it in like, 45-60 mins, and died as a result.
I think the biggest problem is diluting the potassium in your bloodstream, which is necessary for proper heartbeat/rate. Dilute it down too far, and the heart will stop. Something like that...I wasn't a biology major

I know when you dilute sodium too much, your muscles, especially the legs, will cramp up and almost be imobilized.